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H: Well, are you still looking for the perfect Valentine's Day gift? Of course presents like candy, flowers or jewelry / always nice, but we're turning to an unusual source of inspiration. Financial author and radio host Ramsey Dave. Dave, good morning.
D: Good morning. I, I take it you are not buying this.
H: You know, it's nothing I don't look at you and think: What a romantic kind of guy!
D: Of course.
H: Yeah. But you've come up, you've come up with this concept called " a love drawer". I wanna ask you why you think that is an ideal Valentines Day gift?
D:Well, it's an ideal Valentines Day gift if you are smart enough to put chocolates and roses with it..
H: Thank you. A diamond at the bottom, like I said.
D:Yeah.That'll work. That'll work.
H: Sure.
D:Well, it's an ideal gift 'cause the way you say you know, when you're a real man, a real woman. The way you say I love you to your family is you are prepared, you know, you got your act together if something happens to you, you know, I lost a good friend this year, under 30 years old with brain cancer. He left his wife and three days later she had their son, and they had their whole life planned out financially, it was all together and in the middle it's a horribly devastating situation, all of these grief, there's a smile, because he said I love you in a whole different way.
H: And it must have meant a great deal to her, a great source of comfort inspiration certainly.
D:Well it really did, (Yeah.)'cause it gave her all the stuff to walk with and we've of course walked with her through that.
H: You know, I hate to bring this up, but it see(ms), doesn't like some kind of unusual, unusual gift, though. I mean, you know, right? I'm not sure what I would do if I, you know my husband ,when we got married he said I'm gonna buy you a diamond book, instead of a diamond, which I think it's a sort of long the same lines. The first thing in the love drawer is: a will.
D:Put a will. 78% of the public dazzled at a will. That's stupid.
H: 78%?
D:That is Stupid. Cause you can get a will online, it's something like USlegalforms.com, and..., just these websites and get online wills, that are state -specific, that are easy to do. And even if you don't have money, you got somebody you care about. You probably got a kid and you want to stay to not to manage that. You wanna tell folks what to do with your stuff and that's just wise.
H: And it needs to be notarized, though, right. (Absolutely.)You just go to a bank or, whatever, a notary.
D:And again make sure it's state-specific, because probate law is to your state.
H: All right. The next thing is an estate plan. What's in an estate plan? And this is something, I think, we commonly think of with the wealthy.
D:Well, it is pretty much for the wealthy. In the sense, that if you've got over a million dollars' assets, you've gotta have some other things that you are doing to keep the government's hands off the money in the process. But of course, the first element of the biggest estate plan is the will, where there may be trust, there may be some other things built into that, and you know, that, that's not for everybody, but there's something you kind of need to think through.
H: All right. So the will and the estate plan kinda go hand in hand.
D:Absolutely.
H: All right. That could be actually one folder.
D: Could be.
H: More,more room for chocolates.
D:And diamonds.
H: Yes! Funeral instructions. How you want to proceed, you want, yes.
D:You know, we don't wanna do it in wills, we don't like doing this stuff. One guy tell me, say I can't do a will, I might die! So dude, you're gonna die. (Yeah.) You need a will, so you need to lay out the game plan(that you're gonna die.) of what you gonna do . And this could be something as simple as you know, I don't want the Mercedes casket, and I like the Chevy casket. You know, I don't want, I don't just spend nine millions bucks to put me into the ground. Just, just take it, you know, and you leave instructions and directions that way. Some people even pre-plan their funeral in detail.(and it's ok?) I don't..I haven't done that personally. I would not prepay, (Oh, really?)I've already invested in state. Let the investments cover it.
H: Really. Ok. Er, speaking of investments, that brings us right to our next folder, which is all about investments.
D:Right. You put everything you've got in there, the house file, your stocks, your bonds, your mutual fund, your rough IOA, your 401k at work, your kid, you know your kids' college funds. Mutual fund statement's going there again, the whole point is you can reach to one place, win some that happens. And it's all taken care of and it's easy, it's not like I wonder where I will go here, / bury the mutual fund statement at backyard, you know. Now!we're gonna, we've got a game plan, it's all right here together. And it just makes the whole process so much easier.
H: You know, this is such a great idea too. Because you know, I rare, rarely venture into my husband's office, because the stuff is everywhere. As suppression, I shouldn't have said it on TV. But anyway, it is everywhere. It's nice to, when you're still alive, to be able to find it all, you know, in one place.
D:You know, my wife Sharon is a very bright lady. But she is not a financial geek like me. You know, and so, it's all layed out there, and there is a cover and there's a little bit. I'm a nerd. I mean there's a little outline on each file. But you know, the way I look at it is that it's diligence and again it's a way I tell my family I care about them.
H: Yeah. I wouldn't have picked a page for a nerd. (You wouldn't have done that...)A love or lover drawer. No! In, insurance folder is next one.
D:Of course that's all the different kinds of insurance, you know, your health insurance polices in there, your disability polices in there, life insurance. And you should have about 8 to 10 times of your income on you, for life insurance, if your family is to depend upon your income, so if you make like 40,000 dollars a year ,you ought to have like 400,000 in life insurance. So if you die, then your spouse could take that 400,000 and invest it, at 10% it creates 40,000 dollars a year's worth income.
H: And the last thing is the deposit box.
D: It says the deposit box, right. And you keep a copy of the will in the deposit box and you keep the key. So many states and so many places you can't get into a deposit, save the deposit box one thing when someone passes away. So it's a good place to keep duplicates of things and other things too. Sometimes, people keep you know, antique jewelries or something in there and there's way to get to it later. But again, everything's organized. It's in one place. And it's simple in the midst of one of the worst time you'll face.
H:Yeah. It's true. Cupid. It's so good to see you. Dave Ramsey(Bless you too!), thank you, and forget about Chocolates. Boff, give me a love drawer. All right.
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